Receptagen Ltd. announced Tuesday that it has completed a private placement of C$10 million (U.S. $7.52 million) in special warrants.
The Vancouver, British Columbia, company appointed Equity Capital Group, a Toronto-based division of Canaccord Capital Corp., to act as the agent for the best-efforts placement on Nov. 8. The closing of the placement was contingent upon Receptagen's acquisition of Ryan Pharmaceuticals Inc., which also occurred Nov. 8.
Each special warrant was sold for U.S. $1.50, entitling the holder to acquire one common share and one-half of one common share purchase warrant. Each whole share purchase warrant will entitle the holder to purchase one common share of Receptagen (ASE:RCG) at a price of $1.80 or 80 percent of the weighted average closing price of the stock on the five trading days preceding the date of exercise, whichever is greater.
Receptagen will receive $752,000 of the net proceeds immediately, with the remainder held in escrow pending the issuance of a final receipt for a prospectus to be filed with the regulatory authorities in British Columbia, Alberta and Ontario on or before May 31, 1994. The prospectus will qualify the shares and the common share purchase warrants underlying the special warrants.
-- Jennifer Van Brunt Senior Editor
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